/A%20concept%20image%20of%20space_%20Image%20by%20Canities%20via%20Shutterstock_.jpg)
Investors are bailing on Intuitive Machines (LUNR) this morning following reports that the orientation of its Athena spacecraft that landed near the moon’s south pole remains unknown after the touch down.
Shares of the space exploration company opened about 35% down on Friday, and are down 25% at the time of writing.
Steve Altemus, the chief executive of Intuitive Machines, has already expressed doubts that Athena is upright, adding “landing on the moon is extremely hard.”
Versus their year-to-date high, LUNR shares are now down nearly 70%.
Should You Buy the Dip in Intuitive Machines Stock?
Buying the dip in LUNR shares following today’s selloff may be a reasonable move, given the company’s mission was not a total failure.
While there are concerns about the orientation of Athena following touch down, investors could take heart in the fact that the spacecraft, nonetheless, landed in a region that remains unexplored.
That’s part of the reason why Benchmark analyst Josh Sullivan maintained his “Buy” rating on the space exploration firm on Friday, adding “the move in Intuitive Machines stock is an overreaction given [the company’s] backlog.”
Sullivan’s $16 price target on LUNR indicates potential upside of over 100% from current levels.
LUNR’s Financials are Improving Quickly
Intuitive Machines stock may be worth buying on the pullback also because its Odysseus touch down last year that marked the first lunar landing of a U.S.-made spacecraft since 1972 won it billions of dollars worth of contracts from NASA.
Plus, the strength of LUNR’s financials makes its shares all the more exciting to own at current levels. Analysts expect the space exploration company to lose just 2 cents a share in its current financial quarter, which would mean a more than 90% improvement on a year-over-year basis.
Wall Street Still Likes Intuitive Machines Shares
Note that Benchmark is not the only investment firm that’s keeping bullish on LUNR shares despite the Athena hiccup.
The consensus rating on Intuitive Machines stock currently sits at “Moderate Buy” with the mean target of $18 indicating potential upside of a whopping 150% from here.
